Impact of Air Transport on the Indonesian Economy

• Main Authors: Nasution Abdillah Arif, Azmi Zul, Siregar Ikhsan, Erlina Ikhsan
• Format: Article
• Language: English
• Published: EDP Sciences 2018-01-01
• Series: MATEC Web of Conferences
• Online Access: https://doi.org/10.1051/matecconf/201823602010

This study aims to analyze the causal relationship between air transportation and economic growth in Indonesia. The data used are annual time series data from 1990 to 2017 obtained from World Bank. Data analysis method used is method of Vector Error Corection Model (VECM). The results show that there is a relationship between air transport tax and economic growth in Indonesia. Where is the tax of air transport (passenger and goods) and economic growth (GDP). Based on the granger variable or passenger variables test results and the GDP variable indicates that it remains granger-related with significant 1 percent action. Based on these findings it is hoped that further research is suggested to examine the effect of ticket prices or air fares in order to improve economic growth in Indonesia.